Blackstone goes VIP
Blackstone has taken a 2% stake in Indian travel gear retailer VIP Industries for INR36-40 crore ($8-$9 million) through a rare open market transaction for the firm, with reports adding the PE major may up its stake to 5% in the future.
According to India's Business Standard, Blackstone's share purchase values the full company at approximately INR2,000 crore ($445 million). While Blackstone has invested in listed companies in India in the past, including its 68.27% stake in Gokaldas Exports and 14% stake in Allcargo Logistics, those transactions were made through fresh equity shares. VIP's major backers include its promoter, which holds a 43.93%, and investor Rakesh Jhunjhunwala, with a 4.47% stake.
Mumbai-based VIP Industries manufactures plastic suitcases, handbags and travel briefcases, and has grown in recent years through acquisitions such as UK luggage brand Carlton in 2004. VIP claims more than INR200 crore ($44.6 million) in net sales for the quarter ending December 31, 2010 - up from INR167.3 ($37.2 million) in 2009 - and approximately INR650 crore ($145 million) for the 2010 year.
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